How-to tips for those launching a small business

ROCKFORD — A great idea is not always a good thing to build a company around.

With 65 to 75 percent of new businesses folding within three years, entrepreneurs need more than just intellectual capital.

“A lot of folks have a great idea or a great product, but they don’t understand how to turn it into a business,” said Brian McIntyre, director of the Small Business Development Center at Rock Valley College.

That takes passion, planning and more money than you think you’ll need.

McIntyre offers these tips:

Know the industry: Just because you’re a good cook doesn’t mean your restaurant will be successful.

Research the market: Know who will pay for your product.

Be passionate: You’ll work far more than you ever have, so make sure you’re doing what you love.

Plan your work and work your plan: Entrepreneurs who fail to plan, plan to fail. You don’t need a full business plan, but you need to establish a direction for your business and execute whatever plan you come up with.

Be well-capitalized: You’ll need more money than you think, so stockpile plenty of cash to get through the lean months of launch.

Embrace the ride: Manage your risk by launching when you know 75 percent of what you need to know. If you wait too long, someone else will launch a similar business and you’ll be left behind.

McIntyre said entrepreneurs must be confident in themselves to succeed and excel.

“I tell them that you have to be the best at what you do. If you think you are No. 2 or No. 3, you’re probably No. 8.”